Mortgage rates drop as market oscillates

As a result of recent turmoil with China's stock market, U.S. mortgage rates declined slightly with the benchmark 30-year fixed-rate dropping in at 4.03 percent from 4.06 percent. This was down from 4.23 percent the year prior.

Chinese stocks had plummeted last week, which caused a domino effect on the global scale. U.S. stocks tumbled as well prompting investors to focus on government bonds, which sent prices up and yields down.

We are currently seeing strong housing data across the country, with sales of new single-family houses up 5.4 percent from June to July. According to this data from the U.S. Census Bureau and the Department of Housing and Urban Development, sales are up 25.8 percent compared to the same time last year - a substantial increase over just one year!

With the uptick in housing market activity and mortgage rates coming in at historical lows, now "might be a good time to lock in your rate," said Brett Sinnott, vice president of capital markets for CMG Financial in San Ramon, CA.